Dimon Flags Tax Concerns as India's Foreign Investment Hopes Fizzle

JPMorgan Chase CEO Jamie Dimon has flagged India's inconsistent application of taxes as a concern for foreign investors, despite the country's favorable economic prospects.

India received a record close to $100 billion in foreign direct investment during the financial year that ended in March, but net inflows were significantly lower at around $7 billion after foreign investors exited some of their earlier investments and Indian companies increased their investments overseas.

Dimon noted that foreign companies often have difficulty competing with local firms due to regulatory restrictions, which can deter foreign direct investment. He also pointed out that tax rules remain a concern for foreign investors, who worry about the inconsistent application of taxes.

'Most investors probably have very positive views on long-term investment in India, but they worry about the inconsistent application of taxes,' Dimon said. 'I get a lot of complaints from companies about paying more tax on a deal than they expected.'